I am a volunteer with a religious group and do outreach at local malls. The malls want a general liability coverage certificate. My group is not a 501c3, we are just like-minded volunteers offering flyers and brochures. My question is how to get one coverage? We don't have a business(nor are we interested in creating one), but could each person get their own policy as a sole prop/independent contractor or something? Please advise. We don't want to be 'sponsored' by another group or affiliated with another group, we just need to get the coverage we need to continue the way we have been.
General Liability?
- Thread starter Carly
- Start date
- 2,623
Theoretically, yes, as a sole proprietor but it would likely be expensive enough to discourage people from continued involvement.
Stand alone liability policies have minimum premiums. In other words, if the pure premium was $100 based on rates and classification, the insurance company might charge $500 just to cover the cost of writing the policy.
5 people each paying $500 for a policy isn't likely to fly when 5 people might be covered on 1 policy within that $500 minimum premium.
No, but you can give your group a name and call it a social or religious club and see if you can get an independent agent to find you a policy at a reasonable price after getting a commitment from each member to chip in for the policy.
Getting that money from your group members is going to be your biggest hurdle.
- Thread starter
- #3
Thanks for the reply! So, cost is not a huge issue for the group. We just need to know how to go about being in compliance. So if we had 5 people, willing to chip in and we named ourselves ABC group, bible volunteers.....we would then find an independent agent to find one "general liability" policy that covers all of us? Or is one person getting the policy as an independent contractor that covers the rest?
- 5,290
Carly, if you get coverage as a group, make sure you use a good, ethical, honest, and experienced agent and explain the situation. If the group isn't an actual organization with it's own FEIN#, then I don't know if you can get legitimate policy. I frankly don't think so. If you have this conversation with a bad agent, and there are many, he/she will sell you a policy anyhow, and then god forbid something does happen, there could be lawyers and fingerpointing, and no one is covered.
- Thread starter
- #5
- 2,623
No, the group would be the insured and all the members would be defined as insureds.
Agree.
Best way to make sure that the situation is properly explained is have the agent fill out a paper application (or print it out) with all the information, read it carefully before signing, and INSIST on keeping a copy so you know what information was relayed to the insurance underwriter.
If the insurance company accepts the group and writes the policy there wouldn't be any future need for lawyers and finger pointing.
I'm not sure that the lack of an EIN will be critical to the underwriting of the policy (though I suppose it could be) but having one and having a checking account in the name of the group could be critical in separating the group's liability from the individual's personal liability.
- 5,290
The lack of a Tax ID number is ABSOLUTELY critical. When someone doesn't have their own tax id number, that means they aren't a legal entity. It's hard to write insurance for an entity that doesn't exist. Writing commercial policies for the last 7 years, it would be a HUGE issue with me. I deal with Tax ID number issues every day.
Please Jack, for the love of god, please stop posting about things you don't understand. I'm begging you. Please stop. Please, please please. You don't help people when you "advise" on things you have no understanding or experience with. Find something you do understand and post about that, whatever it is. I'm asking from the bottom of my heart, sincerely, please. I'm tired of arguing with you and correcting you over and over and over again. It wastes my time, embarrasses you, and confuses the op.
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